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71 thoughts on “FATCA explained: The new tax law for US citizens abroad”

  • One thing your little video fails to mention is that it won't be just US citizens who have their information forwarded to the IRS – banks are required to forward information on anyone who has any ties to the US – so that would be German citizens who are married to US citizens, or German citizens who spend time in the US, any one born in the US (even if they never worked there) or children of US citizens who have never lived in the US, or anyone with a US green card, or someone with family in the US…. The list goes on and on.
    You also didn't mention that the information going to the IRS includes things such as account details, balances, account transfer, incomings, outgoings – basically all data is up for grabs. Oh, and if you are German and your information is mistakenly sent to the US? Tough for you I guess! And the IRS plans to share all of that information with other 3-letter agencies as well – CIA, FBI, NSA, etc.
    Also, you failed to mention who is going to pay to implement FATCA in every bank in Germany. That's right – it's YOUR CUSTOMERS!! And not just the US customers…..
    Great job signing up to FATCA and letting the US get away with their implied 30% punishment.

  • Does anyone actually think that Americans living abroad are key to solving the US's debt problems when only 20% of those who file from abroad actually pay any US tax? Get real. FATCA was created to catch US residents hiding money offshore and non-residents weren't even considered when this legislation was sneaked by Congress. 

  • Thanks for video, but dual US/EU citizens have rights.  FATCA may be advantageous for the banks, but selling out dual US / German citizens is quite another matter.  Let the discrimination lawsuits begin! And sort out the fault lines of FATCA.

  • Atticus inCanada says:

    This  is just a load of crap. Expats generally don't owe taxes. Just give up your U.S. citizenship. It's not worth it. No other modern nation in the world attempts to tax people where they don't live. Screw you U.S.A. My Canadian spouse won't give you a red penny. Oh and Americans even thinking of visiting here? STAY HOME!

  • FATCA is another way of the IRS to extract more money from people. Do people really think that those other countries are going to just happily jump through hoops for the pencil pushers in the U.S? Be for real. All this is going to do is collapse the American Economy. Those other countries are going to start to dump their Treasury Bills and all other U.S. Dollar Holdings. People are sick & tired of the American govt sticking their noses in where it doesn't belong and all this is going to do is make the few remaining countries cash out of the U.S. Dollar altogether. The American People are taxed too much already. If the govt didn't spend so much on itself and illegal wars on countries with their oil under other country's sand, they wouldn't need to tax Americans so much to begin with. Why do you think rich Americans go overseas in the first place? Answer: To get away from the Greedy IRS. H.R. 2847 had FATCA hidden at the very bottom where virtually nobody would see it, until it was signed into law and too late to stop. If people anywhere on the planet think that this Draconian Law is going to help America or anyone else in the world, you are sadly mistaken.

  • This will crash the dollar! All by Design. And Obama doesn't even know he's the puppet that's going to be left on the stage when the dust settles.

  • ElectronicArtillery says:

    this fatca is meant to make the world bow down to usa, because it will effect all banks in every country around the world. the only solution to not get effected by this dibillitating bullshit, is to fully disconnect all ties with the US. do you really think if there are american citizens in Russia, Korea, or china that the banks in those countries will comply to fatca? not only that, in other area's of the world it will probably increase corruption

  • Stormbringer2012 says:

    IRS what a freaking joke They are a privately owned agency that works for the federal reserve which is another private institution. Not one penny of that money goes to the running of our government

  • Time to boycott the whole system, get a check, cash it and store it in your safe at home, or better yet, buy gold and store it there, commodities aren't taxed, only when sold with a profit. I would just keep it in gold and redeem it's value when the whole system collapses and when there wouldn't be a taxing authority. lol, We need to outsmart these crooks somehow.

  • What ever $ they get will be like bailing the Titanic with a paper cup- Not going to effect the deficit too much-

  • sounds like fat cat lol    they should have confiscated those long time ago, why tax when you can confiscate? 

  • Colonel Absconder says:

    If you're sick of government BS or banking totalitarianism with arbitrary controls, and if you're sick of being seen as a cash cow by "your" government look into Bitcoin. Be your own bank, and don't be inflated or taxed away.

  • Desperate times call for desperate tactics. Please pay your taxes now to the same people that are enslaving you through Alimony, Child Support, the robbing of your property and the stealing of your Children. PAY NOW!!!

  • Lol if your American decided to live in another country, then are still basically a US citizen to pay taxes LMFAO..

    You Americans have a lot of bullshit to fix now that you've gone this far.
    This must be the work of some central federal bank policy in the US.

  • Looks like they tried to make the acronym "FATCAT" but fell short (maybe had second thoughts). A bit of anti-corporate, anti-rich rhetoric to help the medicine go down.

  • Hi TA, there's a new "Planet of the Apes" movie that has been released in this part of the world. I haven't seen it, but word going around the manosphere is that you make an appearance. Is this true? I personally didn't believe this, but then I saw your picture which looks uncannily like one of the characters. Do the apes help the humans, or just say "fuck it, we're going our own way?". Any feedback on this point is really appreciated. Cheers. 

  • Aw the poor rich folks won't have their offshore tax havens….hahahahahaha!!  Nice try!  I LOVE LOVE LOVE FATCA FATCA FATCA!!!

  • Not only do US taxpayers living overseas have to pay US tax, but they have nowhere to invest their money. Foreign financial institutions don't want them because of FATCA. And US financial institutions aren't allowed to serve them because they don't live in the US.

  • I'm an american citizen living in France since 1973 (7 ears old) and I received a FATCA form to fill out from my bank! I've been reading all about this on the internet this weekend.
    Until today, I have never filed back an IRS form and never even new I had to. I've only lived and worked in France my whole life and until today, was always proud of being an american citizen. I don't even have an american social security number.
    Now, I'm just furious at such an injust, imperialistic dicatorship called Uncle Sam.
    I pay taxes in the country of residence where I make my money. IRS has no right whatsoever on the money I make in France. So, even if I know I won't owe them anything anyway because I just make average wages, I'm going to get naturalized French and send my passeport back to the american ambassy here in France with a denial of american citizenship immediately. And I'm not paying a penny to quit my american citizenship I can tell you that. Don't be afraid fellow citizens, just take another nationality and become free ounce again. So much for the US of A. IRS can go fly a kite on Mars as far as I'm concerned. I don't owe them anything and they have no right what so ever on my french money. God bless my father for bringing me to France and to Europe. Also, my mother is Dutch, so I feel much more of a European citizen anyway. The only result of all this, is turning abroad citizens into enemies, furious of such injustice, instead of being proud ambassadors. Now when I hear people criticize USA I'll say "You are absolutely right" instead of trying to defend america. A sad story really for USA. So be it, it will help America collapse faster

  • Bla Bla Bla

    Put in the face of the american congress why USA became independant in the first place :

    Ok, let's get down to a little bit of facts and history to better understand what's at stake.

    First of all, why did the 13 first colonies in america go to revolution against the english empire. Yup, you bet, the main reason was taxes. The main reason the colonies started rebelling against 'mother England' was the taxation issue. The colonies debated England's legal power to tax them and, furthermore, did not wish to be taxed without representation. This was one of the main causes of the Revolutionary War. Now how about that one for greedy little congressmen.
    Read on further : http://www.history.com/this-day-in-history/american-colonies-declare-independence

    Second of all, the origin of citizen based taxation was the civil war. Yup again. To discourage soldiers from leaving the states they created citizen based taxes, just like the english they fought for independance did. Read on further : http://tax-expatriation.com/2014/04/01/the-u-s-civil-war-is-the-origin-of-u-s-citizenship-based-taxation-on-worldwide-incomes-for-persons-living-outside-the-u-s-does-it-still-make-sense/

    So the real question is : Is this taxation rule still relevant in the 21st century ?
    Not only is it very descriminating for US citizens like you and me abroad, but FATCA also creates serious damage to the United States and its economy!!!

    Over here in France the AXA bank has thrown out all it's US citizenship customers and I have received a FATCA form from my bank. As I arived in France in 1975 at the age of 9 years old, I'm going to get naturalized French sooner than I thought and give up my american passeport and nationality if I have to. On top of that, my mother is Dutch so heck, I don't care. Thanks dad for bringing me to this lovely country. But it's something that american citizens working for a couple of years abroad aiming to go back to the states will probably not do. And that's where the economic factor comes in.

    Most americans that are sent to work abroad are important people. Now, major companies don't want to hire americans anymore, nore have them participate in their actions. You can easeliy mesure the negative impact on the US economy. read on : http://www.repealfatca.com/index.asp?idmenu=4&idsubmenu=121&title=News

    and

    http://www.thenewamerican.com/usnews/congress/item/17273-new-u-s-tax-regime-is-devastating-experts-say

    The only thing that will stop citizen based taxation is when the congress wakes up and realizes the harm it's doing to the US economy, wich will come in the near futur.

  • Go for the mouvement "As long as FATCA lives, I’m not buying American" (companies like Apple, Dell, Ford and even Boeing would be quickly penalized :).

  • Looks like it all ends well then!

    Except….Other that a nasty little African Country (who's minister was thrown out of Canada for their efforts to tax Canadian citizens for the claimed connection to Eritrea, how ironic when they sign up to FACTA!) no other Country IN THE WORLD chases down their citizens around the World to claim tax on money earned in other Countries and taxed in those Countries.

     The USA was FOUNDED on fighting taxes like this!

    Myths…….

    "If you don't like it, simply hand in your US citizenship".

    Nothing simple about it. To be left alone and for Uncle Sam to take back the passport, you have to jump through some very expensive hoops and in many cases, it's difficult beyond belief.  And that is ignoring the emotional  cost of giving up your citizenship.

    " It's just a form, stop whining!".

    It's  a HUGE document in a zillion words of Lawyer speak and if you make a mistake, even one worth a couple of Dollars, you can be fined hundreds of thousands of Dollars. There is NOTHING simple about filling in that form when you have income from more than one Country, interest payments, dividends, pensions from multiple countries.

    Taxation on Nationality was introduced by the USA to punish those who tried to leave. Nothing changed there then. Sadly, the US perception that those who leave the USA and who don't pay taxes there are traitors plays all too well in to the hands of fools who are all too happy to see this. A US housewife married to a Brit in London will not feel quite the same when she has to pay 3 months income to file a return to a Country she has nothing to do with.

    And that only scratches the surface. The more you look at FATCA, the more you see the USA shooting itself in the foot.

    US citizens abroad are being treated little different to the Jews in Germany, really. You face persecution, fines and punishments way beyond those that residents face because the perception is that you are getting something others do not. The  US population who have been persuaded that you are tax evading traitors, hate you.  It will not get better when you go to the bank locally, either. US citizens are having their accounts closed and are having financial services refused. If they can get an account, they are facing charges from the bank to cover the cost of FATCA compliance.

    Should I start on the effect if you have a job where you are a signatory to the bank account, where the rest of the company will be rightly furious that you have to hand over the company accounts to the IRS? Or shall we go in to what happens when an accidental US citizen takes a major share in the family business, so rendering that business and all family members liable to US taxation when the accidental citizen (student? dies?

    A US passport for those abroad is now a liability, the Nationality is toxic. FATCA is going to do the USA some lasting harm, no doubt at ll.

  • Hello Internet.  If you have a couple minutes in between cat videos, please take a look at this White House petition asking the WH to oppose double taxation of American ex-pats.

    http://youtu.be/L2YaIOtJddA

  • I don't get it. So the foreign bank gives the irs your information and I guess the irs then takes money directly out of your bank account? but if the foreign bank doesn't comply then the irs takes 30% of they're money too? I understand it's bad and complete bs, but I don't understand how it works still. what am I not seeing?

  • Be aware that FATCA is not a done deal. The Alliance for the Defence of Canadian Sovereignty (ADCS), a Canadian non-profit organisation, is sponsoring a lawsuit against Canadian legislation enabling the Canada-US inter-governmental agreement (IGA) implementing FATCA in Canada. The plaintiffs are two Canadian citizens, both born in the US to Canadian parents and returned to Canada as infants. The lawsuit was filed August 11, 2014 in the Federal Court of Canada.

    For more information or to participate in the suit, see the ADCS website: http://www.adcs-adsc.ca/

    If you are a Canadian citizen born in the US, or if either of your parents were born in the US, or if you have or had a green card, or if you are a "snow bird", or indeed if you are a US citizen resident in Canada, you may be a "US person" in the eyes of the US government and subject to American tax law. FATCA is intended for identifying your financial assets, so as to facilitate confiscation by the IRS.

    There is considerable interest in this lawsuit outside Canada (and the US), in countries which also have FATCA IGAs. Persons in these countries affected by FATCA and their own country's IGA see the Canadian case as a precedent for legal action where they live.

  • So I'm guessing most people here are rich and living abroad, because of course this wouldn't affect most USA citizens who barely have one national account and can't afford to even travel out much.

  • So literally the IRS will steal your money, if you don't comply you end up in jail! So for national security purpose term this is gestapo. Why would the government or the corporate IRS is to anxious to find out what these US persons doing abroad. To determine what in the world they're doing, they must assure these traitors needs to payback their privileged rights back to the freeworld[sic]. If not suffer the consequence as a terrorist – categorized as a hostile person an a treason for not providing personal and financial information.

  • This is just so monstrous as to be unbelievable. Canada, with over a million "US citizens" is particularly badly effected. The Canadian government is currently being taken to court by Canadians for breaching their rights under Canadian equality laws. People often say this does not effect anybody earning less than $90,000 or so, but that is irrelevant. The cost of annual compliance can be thousands, the cost of making a mistake can be met with fines that are draconian and completely out of step with the offence.Then while there may be an exemption on earned income, not all income is earned. As an example….A disabled Canadian child born in Canada to Canadian parents with a Canadian Disability Savings plan wholly funded with Canadian money and topped up with Canadian tax payers money……TAXED BY THE USA because a parent was born in the USA? WTF!

  • Kermit the Frog says:

    This is designed to weed out businesses trying to hide money overseas, but who it hurts is the expat who has been living in Germany and paying  german taxes for 20 years and forgot to file for his foreign earned income statement to the IRS a couple of times so his bank account gets locked and the irs tries to charge him for money he already paid taxes on.

  • Kermit the Frog says:

    Fun fact. If you win the Lottery in Germany, you dont pay taxes on it, but if you're an American expat who spent most of your life as an expat on the german system and you win the lottery, America wants a 30% cut. Of course when you retire, theyre not gonna give you shit since you paid your income taxes in Germany

  • Did you know the BVI have over 400,000 active IBCs
    (International Business Companies) registered there? BVI population is about
    26,000 people.  

     

    Here's one reason why!

     JPMorgan/Chase writes on U.S. Estate
    taxation:  "Because stock of a foreign corporation (in a no tax
    haven) is not subject to U.S. estate tax, holding U.S. situs assets through a
    foreign corporation constitutes a planning opportunity."

     

     http://www.google.bs/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwi9vaepy7DJAhVKMSYKHUO0AsEQFggiMAE&url=http%3A%2F%2Fwww.jpmfinancialservices.com%2Fimages%2FPDFs%2FEstateTaxation.pdf&usg=AFQjCNFAd7z4V6mJPIxlhkXYOQHkU2dyzQ&sig2=GV47r4RDs2fd9BkgQBnVDA

     

    Foreign Companies (FC) are not subject to US
    Estate taxes (i.e., zero%) on all their US holdings – and, with just a little
    tax planning this would include his/her US real estate holdings too. A foreign
    individual / NRA would be subject to a 40% FET minus only a $60,000 exemption.
    The FET does not apply to NRA US bank accounts, but most everything else gets
    taxed.  

     I was audited by the IRS in 1997 (after forming over 700 offshore companies).

    https://www.linkedin.com/pulse/i-audited-irs-1997-after-forming-over-700-offshore-companies-havens?trk=prof-post

    (Offshore) Management
    companies (called Passive Foreign Investment Companies or PFICs by IRS) don't
    have to file US tax returns. How about that?

  • So if you work outside the US, use NO use benefits, drive not on one single US road,do not use any US health programs, hell do not use any welfare or other assistant program you STILL have to pay US tax…

    So can someone please redefine what 'Taxes" are for me, i was always thinking and learned in school we pay taxes as a benefit to live in American and use the benefits of being an American.

  • New IRS Form 8938 created by FATCA in 2010. Can filing this form be avoided?  https://www.linkedin.com/pulse/new-irs-form-8938-created-fatca-2010-can-filing-avoided-tax-havens?trk=prof-post

  • FATCA is a war crime – period. This is pure racketeering – really the COST of compliance of FATCA to foreign banks and governments is far higher than what FATCA extorts from US citizens. Imagine, all German citizens are PAYING so the IRS can illegally take US persons' money. Remember this is a tax on individuals …. not corporations. The corporations can still do as they damn well please.

  • If I make $50,000 a year abroad, and I own a house in the country where I live, how much annual tax should I pay to the US gov?

  • The USA has no moral right to tax it's citizens abroad, and we should not be helping them do it. These people very often have only the flimsiest of connections to the USA, such as US parents. They are often tax paying citizens of our countries. This law is EXTORTION to enable THEFT from the rest of the world.

  • They don't mention that the USA are the only country in the world, with Eritrea, that tax individuals based on their citizenship. This is just disgusting.

  • The bottom line is this……Americans are the property of the US government and they are NOT FREE TO LEAVE.

  • The Equaliser says:

    I'm a British citizen and I got one never been to America, I'm just a working class soldier ant, what ever happened to freedom and democracy,

  • Sammy Shmilfke says:

    Just remember who signed this into law: Nobel Prize Winner Barack Obama.

    Any American who has lived abroad since 2010 who doesn't hate Obama is not compliant with their U.S. tax obligations and/or doesn't have a bank account abroad

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